Small companies reduced hiring in April, adding 61000 jobs

A job seeker holds a"We're Hiring card while talking to a representative from Target at a City of Boston Neighborhood Career Fair on May D

Author Michael Doyle

04 May, 2017

But mere days after the April 5 ADP release, Washington's official non-farm payrolls account showed the US economy created just 98,000 new positions for the month.

Mark Zandi, chief economist of Moody?s Analytics, said job growth slowed in April due to a pullback in construction and retail jobs, which continue their retreat.

"What was a surprise is that the ADP only revised its own estimate of the gain in March down trivially from 263,000 to 255,000, leaving it still a long way from the official out-turn". That contrasted with the Bureau of Labor Statistics' jobs report, which showed the economy added 98,000 jobs.

The figures for April come after the government reported a sharp slowdown in consumer spending in the first three months of 2017 as the economy stumbled to its worst overall quarterly growth in two years.

This report suggests Friday's non-farm payrolls report, released by the government, could alsocome in close to expectations. It often diverges from federal data.

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The Roseland-based payroll and human resources company said overall USA nonfarm private employment grew at a slower pace than in the first quarter of the year.

As far as the sector is concerned, service providing added 165,000 while goods producing could add 12,000 jobs. "Looking across company sizes, midsized businesses showed persistent growth for the past six months".

"Brick-and-mortar retailers cut jobs in response to withering competition from online merchants". That report will likely show that employers added 185,000 jobs in April, and the unemployment rate rose to 4.6 percent from 4.5 percent, economists predict.

The unemployment rate is forecast to tick up to 4.6 percent from the 4.5 percent recorded a month earlier.

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